VCP for Late Amenders Bounced; IRS Agent Assigned to DL Application

[rocknrolls2]

My client made a VCP submission based on a late amender and submitted a determination letter application in connection with such submission. At the time, some IRS agents bounced deficient VCP submissions and this client's VCP submission was bounced and never entered into the IRS system. Subsequently, the National Office clarified that submitters of deficient VCP submissions were to be advised of what had to be done to complete the submission and that the submission would be entered into the IRS system and listed in a suspended status pending the completion of the application. Just before the revised application was submitted, the determination letter submission was assigned to an IRS agent. The agent is unaware of the pending VCP application because it was not logged into their system. Does anyone have any practical suggestions on having the IRS complete the processing of the VCP submission prior to turning to the determination letter application?

Thanks.

[Everett Moreland]

See the following section 5.07(3) of Revenue Procedure 2008-50:

(3) An Employee Plans examination also includes a case in which a Plan Sponsor has submitted any Form 5300, 5307 or 5310 and the Employee Plans agent notifies the Plan Sponsor, or a representative, of possible Qualification Failures, whether or not the Plan Sponsor is officially notified of an "examination." This would include a case where, for example, a Plan Sponsor has applied for a determination letter on plan termination, and an Employee Plans agent notifies the Plan Sponsor that there are partial termination concerns. In addition, if, during the review process, the agent requests additional information that indicates the existence of a Qualification Failure(s) not previously identified by the Plan Sponsor, the plan is considered to be under an Employee Plans examination. If, in such a case, the determination letter request under review is subsequently withdrawn, the plan is nevertheless considered to be under an Employee Plans examination for purposes of eligibility under SCP and VCP with respect to those issues raised by the agent reviewing the determination letter application. The fact that a Plan Sponsor voluntarily submits a determination letter application does not constitute a voluntary identification of Qualification Failures to the Service. In order to be eligible to perfect a determination letter application into a VCP submission, the Plan Sponsor (or the authorized representative) must identify each Qualification Failure, in writing, to the reviewing agent before the agent recognizes the existence of the Qualification Failure(s) or addresses the Qualification Failure(s) in communications with the Plan Sponsor (or the authorized representative).